Interest in law school has skyrocketed. According to the Law School Admission Council, there were over 76,000 law-school applicants in 2025, up 18% from the previous year. Part of the appeal is the potential salary; the median salary for lawyers is about $150,000.
However, law school is expensive, so many students need to take out student loans to cover the cost. But, President Trump’s One Big Beautiful Bill (OBBB) made many changes to the federal student loan program, and it limits borrowing options for graduate and professional students.
If you plan on entering law school, here’s what you need to know about those changes, and what funding options are still available.
How the One Big Beautiful Bill Affects Law School Students
The OBBB made many changes to federal financial aid, but some of the biggest changes will impact law school students. Here’s how the OBBB may affect you:
1. Graduate Student Loans Are Limited
Under the current system, law school students can use Direct Unsubsidized Loans and Grad PLUS Loans to cover their education costs. Direct Unsubsidized Loans have lower rates, but the federal loan system caps how much you can borrow per year and over your lifetime. Grad PLUS Loans have higher rates, but students can borrow up to 100% of their total cost of attendance.
The OBBB limits your options. The bill ended the Grad PLUS Loan program, so your only federal loan option is a Direct Unsubsidized Loan. For loans disbursed on or after July 1, 2026, the following loan limits apply:
- Graduate school: If you’re pursuing a master’s degree in law, you’re limited to $20,500 per year ($100,000 aggregate limit).
- Professional school: If you’re pursuing a Juris Doctor (J.D.) degree, you’re limited to $50,000 per year ($200,000 aggregate limit).
There are also aggregate caps inclusive of all federal loans used for undergraduate degrees; the total maximum is $257,500.
Important: If you’re already enrolled in law school, you can qualify for an exception and have higher loan limits or access to PLUS Loans so you can complete your program.
2. There are Fewer Repayment Options
One of the perks of federal student loans is the ability to enter into an income-driven repayment (IDR) plan, which can give you a smaller monthly payment. For new lawyers, these plans were helpful because you could have a lower payment amount during the early stages of your career. However, the OBBB eliminates several of those plans.
New borrowers who take out loans on or after July 1, 2026 will only have two options: standard repayment, and the new Repayment Assistance Plan. For law school graduates, this change can cause much higher payments.
How to Pay for Law School After the OBBB Goes Into Effect
In light of the OBBB’s changes, you may need to change your plan for financing law school. To cover your education, follow these steps:
Fill Out the FAFSA
Although there are changes to the federal financial aid system, it’s still important to fill out the Free Application for Federal Student Aid (FAFSA) but federal, state, and school deadlines. Based on your FAFSA information, you may be eligible for federal, state, or institutional aid, including grants and loans.
Apply for Gift Aid
Law school students can qualify for grants and scholarships from non-profit organizations, private companies, and states. AccessLex maintains a database of law school scholarships and grants — which don’t have to be repaid — to help you with the cost of your law degree.
Research Incentive and Loan Repayment Assistance Programs
Some states operate tuition assistance and repayment assistance programs to encourage law school students to live and work in high-need areas within the state. For example:
- Florida Loan Repayment Assistance Program: This program is for civil legal aid staff attorneys who are employed by legal assistance organizations. Participants can get up to $10,000 per calendar year.
- Ohio Rural Practice Incentive Program: In Ohio, students in their final year of law school or recently graduated who work for a state public defender, prosecuting attorney of a county, a county public defender commission, or a joint county public defender commission to represent indigent people can qualify for this program. The maximum amount of loan repayment assistance is $50,000.
- Texas Student Loan Repayment Assistance Program: Texas lawyers who work for legal aid organizations within the state can qualify for up to $6,000 per year.
The American Bar Association has a database of state-run programs, so you can find potential programs in your area.
Consider Private Student Loans
If you need additional financing after using gift aid and federal loans, private student loans can be useful tools. With ELFI, you can borrow up to 100% of your law school’s total cost of attendance, and you can have up to 15 years to repay your loans.
You can use the Check Your Rate tool to view your loan options and potential rates without impacting your rates.
